This study proposes a receiving-end voltage compensation method employing a phase-specific reactive power control strategy with a neutral-point-clamped (NPC) inverter in a three-phase four-wire distribution system. The principle of the proposed receiving end voltage compensation method is explained. Further, the proposed control strategy can solve the problems of the three-phase, four-wire distribution system, which are an increase in the neutral-line current and the unbalanced voltage. Computer simulation is performed to confirm the validity of the proposed method. The simulation results indicate the receiving-end voltages can be compensated using the proposed method.